As we’ve shared in previous updates, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is one of the biggest changes to the UK tax system in recent years. With the first phase starting in April 2026, now is a good time to revisit what it means and who it will affect.
🧾 What is MTD for ITSA?
MTD for ITSA changes how sole traders and landlords report income to HMRC. Instead of a single annual Self Assessment return, those within scope will need to:
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Keep digital records
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Use HMRC-compatible software
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Submit quarterly updates during the tax year
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Complete a final year-end declaration
The aim is to improve accuracy and give better visibility over tax liabilities throughout the year.
👥 Who will be affected – and when?
The rollout is being phased in:
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From April 2026 – individuals with qualifying income over £50,000
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From April 2027 – individuals with qualifying income over £30,000
Qualifying income includes sole trade and/or property income.
⏳ What hasn’t changed
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Tax payment dates remain the same
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Quarterly updates are not tax bills, just summaries of income and expenses
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Those below £30,000 are not currently required to join MTD for ITSA
✅ What should clients be doing now?
As we move closer to 2026, it’s sensible to:
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Check when MTD will apply to you
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Ensure you’re using (or ready to move to) digital bookkeeping software
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Start thinking about quarterly reporting, rather than annual compliance
If you have any concerns or questions about MTD for ITSA and how it applies to you, please get in touch with your client manager.